The threat of a $1 trillion United States sanctions hit on the Chinese internet giants that have led emerging market stocks to their first record high since 2007 is overshadowing the rally, just as increased scrutiny from Beijing itself squeezes valuations. Al Jazeera reports that sources in Washington last week said US President Donald Trump was considering adding Alibaba and Tencent, worth a combined $1.3 trillion, the second and third biggest emerging-market stocks in the world and held by almost every major US investment fund, to the list of banned firms in the most dramatic step yet against the country’s firms as Trump seeks to cement his hardline policy against Beijing during his final days in office. While incoming US President Joe Biden could reverse the ban, analysts at UBS say the new administration may not want to appear “soft” on China and a reversal still wouldn’t undo the billions of dollars of disruption already caused.